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Three Reasons Why Twitter Will Be Sold Soon
Markus Schlegel | April 7, 2007 at 12:38 pmby
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Who will buy Twitter? That should be on every user's mind because it's going to happen fast. Let's look at the facts first.
Fact #1: According to Technology Review, Twitter had 100,000 users at the end of March. More important, the community is doubling in size every three weeks. That kind of hockey stick growth is the stuff of legends. We're talking ICQ and YouTube territory. They're not going to sit on the shelf for long.
Fact #2: Twitter doesn't monetize its audience right now, but it's working on it. However, there's an important thought to consider. Many of the the most active people on Twitter are serious influencers. Further, a lot of them voluntarily receive messages via IM or, even better, on their mobile phones. That's every marketer's dream. If Obvious Corp, Twitter's parent company, can come up with a way to let the community opt into relevant mobile messages, it will be a cash cow. You can get a taste of this by checking out Woot on Twitter. Some 1700 people already opt-in to receiving deal notices via these channels.
Fact #3: Twitter is a cheap acquisition target right now. Yes, some question its staying power, but my gut is that the site will stick. Once Obvious Corp starts to monetize the community, the cost will go up. Now is the time to get in. Wait around and the price tag will go up.
Now, onto potential suitors. As you look across the landscape, Facebook is currently a great fit for Twitter. I wouldn't count out others like Yahoo or Google either.
Regardless of who wins the bidding war, make no mistake, change is coming. If Ev and Biz want to sell - which of course is an open question - Twitter will be eaten up real soon.